Chinese internet conglomerate Tencent Holdings is raising the stakes in the race against global companies for the burgeoning cloud services market in Asia, with a plan to open two data centers in Indonesia by the end of this year.

Located in Jakarta's central business district, the data centre boasts two utility power lines and 2N redundant transformers as well as N+1 redundant diesel generator with capacity to support up to 72 hours at full load. Tencent's cloud coverage currently encompasses 27 regions and 61 availability zones, most of which are located in China and the Asia-Pacific, and includes markets such as Singapore, Tokyo, Mumbai, Seoul, Moscow, Toronto, and Frankfurt.

Tencent hired more than 3,000 employees for its cloud division last year as competition in the cloud computing space intensified, a Reuters report said. The company also pledged 500 billion yuan (S$102.7 billion) over five years for investments in technology infrastructure, including cloud computing.

Poshu Yeung, Senior Vice President, Tencent Cloud International, said, "With a population of 270 million, Indonesia is the fourth most populous country in the world and the largest economy in Southeast Asia. Given that its population structure is younger, it has a huge internet demographic dividend and its mobile internet market is quickly developing. We are excited to launch our first Tencent Cloud IDC in Indonesia, aiming to help fully reach the peak of the country's promising cloud computing potential. We are also proud of how the new IDC epitomizes our commitment to addressing current and future business needs in Indonesia and Asia, while strengthening our global network which now connects 27 regions and 61 availability zones."

The new data center, located in Jakarta's central business district, will support a wide range of industries, including financial services, e-commerce, entertainment, gaming and education. Local cloud infrastructure bases help reduce delays in data processing, enabling companies to launch more competitive services compared with those using overseas cloud facilities.

Last July, Tencent Cloud signed a memorandum of understanding with Asia Digital Bank Corporation in Singapore for cloud-based financial services and joint innovations for a data-driven bank.

The cloud services provider also has South-east Asian e-commerce platform Shopee and gaming company Garena as its clients. Tencent is a major shareholder of New York-listed Sea, the parent of both companies.

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